Steve Michaels: I would just add and Brian can keep me on , but your point about the AR provision and bad net expense, I mean, while we’re happy with where the portfolio is and proud of the actions we took last year to get the write-offs where they are and the portfolio where it is, we do expect to €“ is also none to be higher than €“ better than 2022 and comparable, but still higher than the pre-pandemic levels by some measure.
Jason Haas: Got it. That’s all helpful color. Thank you.
Operator: One moment for our next question. Our next question comes from the line of Bobby Griffin from Raymond James. Your line is open.
Alessandra Jimenez: Good morning. This is Alessandra Jimenez on for Bobby Griffin. Thank you for taking our questions. First, I just wanted to touch on, kind of listening terms. So what would you need to see in the economy or payment performance to start to loosen terms again and go after more GMV growth?
Brian Garner: Yes. So, from a decisioning standpoint, we’re in the, kind of the same ballpark from a decisioning posture that we’ve been in since the summertime when we talked about our timing actions. We are €“ our base case does not assume a recession in 2023, but also doesn’t assume really any tailwinds or any improvement. We’re watching all the BLS data and all the leading economic indicator data. As we mentioned on the prepared remarks, the liquidity stresses is high for our consumer credit utilization is up. So, we meet every two weeks on our risk committee and we review the portfolio by vintage pool and how it’s playing out. And we also review an inventory of levers that we have at our disposal, which some are to tightened in pockets and some are to look for opportunities to increase approval rates.
We don’t want to knowingly leave profitable GMV on the table for us or our retail partners, but we also feel like in this uncertain environment that we’re operating in, a little bit of defensive posture is appropriate. I certainly hope, it’s not my baseline expectation, but I hope that as we move through this year, we can look for opportunities to increase approval rates and we have those initiatives at the ready, but we’re just being prudent in €“ before we deploy them.
Alessandra Jimenez: That’s very helpful. And then maybe just a follow-up on that. What have you seen in terms of application volumes? Are you continuing to see sequential pressure? Has that kind of stabilized modestly?
Brian Garner: Yes, we’ve seen and we have to look at it by channel, right. So, in-store volumes are kind of flat to slightly down. E-com volumes are up a little, but what you, kind of go through the funnel there’s a pretty material difference in funded GMV from an in-store app versus an e-com app and that makes sense. There’s higher purchase intent when someone’s in the store talking to a sales associates. So, approval rates are higher in store, conversion rates higher in store. And so, when you have app increases online. It has €“ while the big numbers kicks in, it does have a smaller flow through per app at least to GMV. So, that’s something we’re watching from the app side that we’re watching, but we’re also more specifically watching the profile of the app to look for evidence of that opening of the from the credit providers above us tightening, but that’s what we’re observing so far.
Alessandra Jimenez: Thank you so much. And best of luck in 2023.
Brian Garner: Thank you.
Operator: One moment for next question. Our next question comes from the line of Hal Goestch from Loop Capital. Your line is open.
